L Brands Stock Dips on Victoria's Secret Spinoff Announcement

The security is up over 477% year-over-year

Digital Content Manager
May 11, 2021 at 10:10 AM
facebook twitter linkedin

The shares of L Brands Inc (NYSE:LB) are down 3.3% to trade at $66.52 at last check, after the retail name announced it is splitting into two publicly traded companies -- Bath & Body Works and Victoria's Secret. The split, which will be completed in August, comes after L Brands decided not to sell its lingerie brand. Additionally, the company posted an upbeat first-quarter revenue outlook.

Just yesterday, the security hit a five-year high of $71.35. Shares have been tearing up the charts over the past 12 months, with support from the 80-day moving average, which contained the equity's January pullback. Year-over-year, LB sports a whopping 477.2% lead. 

Analysts are still split towards L Brands stock, with nine of the 17 in coverage carrying a "buy" or better rating, while eight carried called it a "hold." Plus, the 12-month consensus price target of $68.30 is right in line with current levels, indicating LB may be overdue for a round of price-target hikes and/or upgrades.

Additional tailwinds could come in the form of a shift in the options pits. This is per the stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than all but 2% of readings from the past year.

Echoing this, L Brands stock's Schaeffer's put/call open interest ratio (SOIR) of 0.65 sits in the elevated 85th percentile of the equity's annual range, meaning short-term option traders have rarely been more put-biased. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners